Chapter 11, Problem P11.34BPGB

To determine

Concept Introduction:

Interest Expense and Net Income:

The interest Expense is the expense other than operating expenses and is considered as an obligation on the entity to be paid. The net income is calculated after deducting interest expense and income tax expense from the operating income.

Requirement 1

The following missing information in the Income Statement for VIRGINIA Communications –

• Interest Expense

• Total and Other Income and Expense

• Net Income before Income Tax Expense

• Net Income

To determine

Requirement 2

Times-interest-earned ratio for VIRGINIA Communications